A Profile and Success Story of KOF


Government of India in mid 1980's started the "Technology Mission on Oilseed and Pulses" (TMOP) in order to enhance productivity in oilseeds and make India self sufficient in edible oil. On 22.8.1984 Government of Karnataka approved the implementation of Nation Dairy Development Board's (NDDB) project "Restructuring Edible Oil& oilseeds Production and marketing' in Karnataka keeping in mind the objectives laid down in the TMOP.

The Karnataka Co-operative Oilseeds Growers Federation Limited (KOF), the Agency Entrusted with implementation of the Project, Was registered on 26th October 1984,under the Karnataka Co-operative Societies Act. The project, which was inspired by the Anand Model of Milk Co-operatives, is designed to create an integrated Co-partite System of production, procurement, processing of Oilseeds and marketing of edible oil and its bi-products.

This project aimed at establishing a direct link between the producer and the consumer by eliminating middlemen. Village level primary co-operative society’s were organized by making the oilseeds growers as members in turn these primary co-operative societies became the members of the apex body at the state level till June 1990.

During the second phase of the project the structure has been re-organized to a three tier cooperative structure with the village level Oilseeds Growers' Cooperative societies affiliated to Regional Unions organized at the district level and in turn the Regional Unions have been affiliated to the state level Federation.

The three Regional Unions, registred on 03rd June 1990, are as shown below
  • Union I : Raichur, Gulbarga, Koppal and Bidar districts.
  • Union II : Bellary, Chitradurga, Davangere and Tumkur districts
  • Union II I: Dharwad, BIjapur, Haveri, Gadag, Bagalkot and Belgaum districts.
Objectives of the Federation:
  • To carry out activities conducive for economic and socio-economic development of Oilseed growers by efficient marketing of commodities.
     
  • To carry out activities of production, procurement and processing of commodities for economic development of oilseeds growers through the affiliated oilseeds unions.
     
  • To develop and expansion into such other allied activities as may be conducive for the promotion of edible oil industry, improvement of land, increase of productivity of oilseeds per ha. and economic development of those engaged in oilseeds production
OILSEEDS GROWERS CO-OPERATIVES (OGC).

At Village level as on 31.03.1999, 390 OGCS have been organized covering 3197 villages with member oilseed area of 3,65,315 hectares. The number of member are 1,53,625. guidance and supervision from the Regional Unions.
  • To encourage production and productivity of oilseed by giving guidance and technical assistance to members.

  • To procure oilseeds from the Oilseed Growers at their door step.

  • To undertake necessary agricultural extension for the benefit of member growers.

  • To provide technical input to member growers.

  • To market edible oil and other products manufactured by the Regional Unions.
Area Agronomic Centre, (Keremathihalli in Haveri District):

The Federation has been giving highest priority for increasing the supply of improved seed. Towards this end, the Federation has set up an Area Agronomic Centre at Haveri with net cultivable area of 23.2ha, where various techniques for multiplication of breeder seeds and adaptive research is carried out. This farm is situated at Keremathihalli village in Haveri district where it also functions as demonstration centre for trials and improved methods of cultivation.

Training centre:

The federation has set up a training Centre along with the Area Agronomic Centre to train the field staff, society secretaries, demonstration growers, seed grower members etc.

Processing Plants:

The project has got a processing plant at Hospet in Bellary district with a capacity of 250 tones per day Groundnut Crushing, a 50 TPD sunflower crushing capacity, a 100 TDP solvent extraction plant and a 50 TDP continuous refinery. This plant comes under Hospet Regional Union.

The Raichur Regional Union has an Oil Processing plant at Raichur with facilities of 140 TDP oilseeds crushing,70 TDP solvent Extraction, 20 TDP refinery and 100 TDP cottonseed preparatory section. The plant was purchased from Karnataka Agro Proteins Ltd, at a total cost of Rs.2.46 cores during the year1992.
The Federation under its direct control has a crushing unit situated at Devanagere acquired from Karnataka Co-operative Marketing Federation with 50 TDP Groundnut crushing capacity, during July 1992 at a total cost of Rs.1.25 cores.

Oil Packaging station, Whitefield

KOF has modern edible oil packaging plant at Whitefield, Bangalore. Various types of edible oils are packed in sachets, Bottles, jerry cans and Barrels to suit the market requirements. NDDB also utilize the surplus capacity of the packing plant to pack "Dhara Health"-a premium sunflower oil brand of NDDB.

Marketing

KOF and its regional Unions are marketing edible oils consumer packs the extent of 1300 MTs per month. OF is the brand leader in "Safal" Double filtered Groundnut oil, since last 15 years Even in spite of server competition from national players and Regional players KOF has a consistent growth in consumer marketing activities. KOF’s major strength is consistent quality and timely supplies. OF is also catering edible oils to major factory canteens (both private and public sectors) in and around Bangalore. KOF has got strong distribution network all over Karnataka which is the backbone in FMCG marketing.

KOF markets following edible oils under the corporate brand name of "Safal" in consumer packs:

Safal
- Refined/Feltered Groundnut Oil
Safal Sunglod - Sunflower Oil
Safal premium - Refined Sunflower Oil
Safal - Pure Coconut Oil
Safal - Pure Farm Fresh Peanuts.

All these Products carry the Government of India’s "AGMARK" seal which is a certification that ensure the purity and quality of the products.

Financial Performance:

KOF and its three Regional Unions started posting profits consistently from the last four years. During the year 2002-03. KOF and regional unions are likely to post the net profit. Through the vegetable oil industry is sick due to edible oils imports under OGL, KOF and its Regional Oil Union have survived and started posting net profits. This achievement is possible to KOF because of dynamic and dedicated Board, Officers, Employees, strong marketing network and grass root village level farmers networks to source the raw materials.

Cost Cutting:

KOF and its Regional Unions have reduced its administrative overheads to the tune of 35% and also reduced the man power strength by implementing Voluntary Retirement Scheme (VRS) and almost 25% of the manpower is reduced.

PSS Operation:

KOF is acting as sub agent of Nafed in Karnataka for PSS operation. This avoids distress sale of oilseeds by the farmer of Karnataka state. KOF procured oilseeds under support price scheme from village level co-operative societies. KOF has procured huge quantities of oilseeds during 1999-2000 up to 2002-2003.Farmers are happy with the PASS operation undertaken by KOF.

AWARDS:
  • Second Best Productivity Award from the national productivity Council during 1985-86
    Best Productivity Award during 1987-88 for its over all progress in the Oilseeds sector form the National productivity Council.
  • International Diamond Star Award for Quality form national Institute of Marketing Mexico during the year 1994-95.
  • Award for excellence and commitment to quality of the year 1995-96 by national Productivity Council.
  • Certificate of Merit Award for the year 197-98 in the category of Marketing and Oilseeds Federations sector from National Productivity Council, New Delhi.
  • Second Best Productivity Award for the year 1998-99 in the category of Marketing & Oilseeds Federations Sector From National Productivity Council, New Delhi
  • First Award For the year 2002-03 and second Award for the year 2003-04 form National Productivity Council, New Delhi.






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